Will one-size-fits-all environmental policies impact the coal chemical industry?

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Will one-size-fits-all environmental policies impact the coal chemical industry? Author/Source: Huahua Net Coal Chemicals Date: 2018-10-31 Clicks: 23 “Our ethylene glycol plant is located in a city in Henan that is part of an air pollution transmission route. From September to October, the plant’s performance in environmental protection assessments ranked last for two consecutive months. The local authorities have ordered us to suspend production; as for how long the shutdown will last, when production will resume, and what to do regarding the losses resulting from reduced output, there is no clear answer at present.” Since there are no environmental issues with the project itself, and no notices have been issued regarding illegal emissions or required rectifications, why can’t it operate? ”In a recent interview, the head of a coal chemical enterprise expressed his helplessness to the journalists. What surprised him even more was that \"I just learned about the documents issued by the Ministry of Ecology and Environment prohibiting a one-size-fits-all approach to staggered production in autumn and winter this month; and right after I learned about them, production restrictions were imposed.\" But if the local authorities order a shutdown, we have no choice but to stop as well; otherwise, how can we survive there in the future? ” Whether emissions exceed limits or not, and whether it is necessary to suspend operations or not, under the pretext of addressing air pollution, orders such as halting production, reducing coal use, or eliminating coal are imposed – several executives from coal chemical enterprises have reported that such situations are not isolated cases. “Increasing environmental pressures have, to some extent, even hindered the normal development of the industry. ”Gu Zongqin, director of the Petroleum and Chemical Industry Planning Institute, issued a heartfelt appeal. What is the actual situation? Coal chemical enterprises claim to be subjected to \"one-size-fits-all\" approaches. On the one hand, the Ministry of Ecology and Environment is committed to protecting the rights of legitimate and compliant enterprises, avoiding simplistic and harsh measures such as forced shutdowns, and has explicitly prohibited such \"one-size-fits-all\" practices ； On one hand, according to several officials from coal chemical enterprises, in practice, local authorities engage in varying degrees of deviation from the planned approach. “It’s not that we are not in favor of environmental protection assessments; however, the local authorities impose excessive requirements in order to meet their targets. Even when a project does not have any excessive emissions or illegal production activities, they still order it to stop operating simply because the region’s environmental performance ranking is low. I think this goes too far. ”The aforementioned official admitted that for companies, shutting down operations means economic losses; “at present, it’s unclear when operations will resume, and the losses have to be borne by the companies themselves – we have no choice but to endure these hardships.” ” A similar situation exists in the Shaanxi region as well. “We have a new project that was decided to be located in a place in Xianyang as early as last December. However, as winning the battle to protect the blue sky requires controlling the total coal consumption, once local authorities set targets for reducing coal use, the project was immediately halted, forcing us to find another solution. ”The person in charge of another coal chemical project asked in return: Coal chemistry is a method that **promotes the clean and efficient use of coal; it is also possible to meet regulatory standards or even achieve improved emission levels. Why then is it banned just like the direct burning of coal? Li Xiaodong, the leading expert at China National Coal Group and general manager of the Coal Chemicals Management Department, also shares deep insights on this matter. “In regions including Shanxi and Inner Mongolia, production shutdowns and restrictions due to environmental issues are extremely severe; we have seen and heard of several companies facing similar situations. For example, in some places, they don’t say whether you’re good or bad; in any case, as soon as an inspector from higher up arrives, the local project has to be stopped first. ” Worse still, \"barriers\" are created at the initial environmental impact assessment stage, causing some projects to be stalled due to environmental approval processes. Gu Zongqin revealed that some provinces bid to purchase environmental assessment indicators, resulting in sulfur dioxide prices reaching 30,000 yuan per ton and nitrogen oxides at 20,000 yuan per ton. “It is difficult to understand from an industry perspective why a coal chemical project would require an additional investment of 100-200 million yuan as a result. ” Various environmental protection measures are implemented to achieve emission reduction targets – but in the view of Shang Jianxuan, deputy general manager of Shaanxi Coal and Chemical Industry Group Co., Ltd., coal chemical projects can meet the requirements for energy conservation and emission reduction, whether in terms of individual emissions, total emissions, or the efficiency of clean utilization. Why do we have to take medicine whether we’re sick or not? ” There are factors of bureaucratic inaction as well as areas that need improvement. In fact, the practice of adopting a one-size-fits-all approach in environmental protection is not a new phenomenon; industries such as petrochemicals, as well as mining, face similar issues. The Ministry of Ecology and Environment has issued a number of policies, such as the \"Opinions on Banning One-Size-Fits-All Approaches in Environmental Protection\" and the \"Opinions on Further Strengthening Supervision and Law Enforcement in Ecological and Environmental Protection\", to explicitly prohibit such practices. Despite repeated warnings, why does the coal chemical industry frequently face such drastic measures? Behind this, is it an overreaction on the part of environmental protection efforts, or are there flaws within the industry itself? **Peng Yingdeng, a researcher at the Urban Environmental Pollution Control Technology Research Center, pointed out that **although requirements have been issued at the higher levels, it remains to be further examined and analyzed whether they can be fully implemented at the local level, and whether there are any deviations in their execution. “For example, in the recent special campaign to address air pollution during autumn and winter, it was even required that the entities subject to production shutdowns and restrictions be specified down to individual manufacturing processes, production lines, or specific products. In some areas, **due to inadequate preliminary work, the situation could not be fully understood in a short period of time; simplistic handling is likely to lead to unintended consequences.** ” “At the same time, it is undeniable that **laziness in governance also exists in some areas. ”Peng Yingdeng said bluntly that, with the mindset of \"better to err on the side of overaction than to miss anything,\" environmental enforcement involves addressing every issue without distinction; it may seem strict, but in reality it is a form of irresponsible and reckless behavior. ” Xing Lei, a professor at the Central University of Finance and Economics, agreed with this view, saying, “Local authorities **need to clarify what exactly is the basis for carrying out environmental protection efforts?” I believe that the criteria should not be based solely on environmental protection targets and figures set by higher authorities, nor should they be decided arbitrarily; rather, clear and comprehensive standards should be established based on the actual circumstances. Companies that meet the standards should not suffer disruptions for no reason. ” Apart from **factors**, Peng Yingdeng said that the industry itself also has areas that need improvement. “From a technical perspective, coal chemical industry is indeed a form of clean and efficient utilization of coal, but there are indeed unavoidable issues, and this industry remains under strict regulatory oversight. Especially in some companies, things seem great in theory – with advanced environmental protection plans and designs – but the actual practice is quite different. According to the data held by environmental protection agencies, in practice there are cases where projects fail to meet standards consistently and where environmental protection measures are not properly implemented; this can lead to the formation of a fixed perception among these agencies that coal chemical enterprises do not comply with regulations satisfactorily. Therefore, as a precaution, **it is better to choose to shut down. ” Environmental protection and industrial development should not be set against each other artificially. “Energy conservation and environmental protection are essential tasks.” As a company, we’re not meant to constantly complain about environmental regulations, but we are also concerned about how such one-size-fits-all approaches in environmental protection can be avoided ”During the interview, several business professionals raised questions with the reporters. Similar issues have also caught Xing Lei’s attention. “Unreasonable shutdowns and production restrictions lead to frequent starts and stops of projects, and these repeated start-stop cycles cause significant losses to coal chemical enterprises; over time, this will affect the development of the industry. In other words, a one-size-fits-all approach will undoubtedly artificially create a conflict between environmental protection and the economy. ”He pointed out that whether environmental supervision is overreaching or insufficient depends on whether the assessment criterion of \"not focusing on origin but on emissions\" is followed in the implementation process. \"Through certain technical and technological measures, coal chemical projects can fully achieve clean production; during supervision, attention should be focused on emission levels.\" If enterprises meet the emission standards, there is no reason for them to suspend operations or reduce production due to environmental concerns ； Similarly, there is no room for negotiation with companies that exceed emission limits. ” Peng Yingdeng believes that to eliminate a one-size-fits-all approach, it is crucial to grasp the issue of \"degree\". As **, it is necessary to carry out pollution control with precision, while also avoiding harsh enforcement practices that may harm legitimate enterprises ； As a company, it is an essential responsibility to abide by laws and regulations and ensure compliant emissions. “Due to our heavy pollution backlog, addressing it cannot be achieved overnight. To fundamentally reverse the pollution situation, sometimes more forceful actions are necessary; **the relevant departments may also fall short and have shortcomings. But companies should not resist it for this reason and refuse to communicate. The key point is that there is no competitive relationship between the two; rather, they should work toward common governance goals. If both sides fulfill their responsibilities and carry them out properly, the conflicts will naturally be resolved. ” Furthermore, from the perspective of the enterprises themselves, Gu Zongqin pointed out that it is possible to improve these projects by carrying out benchmarking within the industry, enhancing technological innovation, and optimizing resource allocation, thereby raising their environmental standards and reducing pollutant emissions. “Over the years of operation, our biggest realization has been that by striving to excel in environmental protection, companies certainly won’t suffer any losses. ”Li Xiaodong gave an example, saying, “Due to environmental regulations restricting production and efforts to reduce capacity, the prices of some products have increased invisibly.” Thanks to our effective environmental protection efforts and the trust we’ve earned from the local community, we were able to continue operating while others stopped production, which in turn allowed us to make back our losses. ”